Current Liabilities Definition And Examples
We already familiar with Current Liabilities in our previous articles but here we discuss them in more details and explain them with important examples. Current Liabilities Definition : These are the liabilities that are paid out for the current Accounting Period of time or with the total period of one year. If the Current Liabilities exceed Current Assets then it is not good position for the meeting the daily expenses and amount of Debts in future. It also indicates that Working Capital is not good and company will suffer losses in near future. So Company must improve its resources (Current Assets) to overcome this critical position of the business. Types of Current Liabilities / Examples of Current Liabilities Here are most important examples of Current Liabilities. · Accounts Payable / Su ndry Creditors From time to time, businesses may purchase goods from suppliers on Credit basis for resale purposes. They are also cal